Question

corporate bonds from hyren airlines are selling at 106.133, bonds from xyx motors are selling at 97.701, and bonds from ergar appliances are selling at 101.294. if all of the bonds mentioned have a par value of $1,000 apiece, how much will it cost george to purchase one from each corporation?
a. $3,051.28
b. $3,000.00
c. $3,305.12
d. $2,694.88

Explanation:

Step1: Calculate cost of Hyren Airlines bond

The bond price is 106.133 (as a percentage of par value). Par value is $1000. So cost = \( \frac{106.133}{100} \times 1000 = 1061.33 \)

Step2: Calculate cost of Xyx Motors bond

Bond price is 97.701. Cost = \( \frac{97.701}{100} \times 1000 = 977.01 \)

Step3: Calculate cost of Ergar Appliances bond

Bond price is 101.294. Cost = \( \frac{101.294}{100} \times 1000 = 1012.94 \)

Step4: Sum the costs

Total cost = \( 1061.33 + 977.01 + 1012.94 = 3051.28 \)

Answer:

a. $3,051.28